1 / 20

AAMP Training Materials

AAMP Training Materials. T.S . Jayne ( MSU ) jayne@msu.edu. Module 4.3: Marketing Margins & Marketing Costs. Objectives. Understand relationships between food prices between countries Examine the relationships between food prices at different marketing levels.

cybele
Download Presentation

AAMP Training Materials

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. AAMP Training Materials T.S. Jayne (MSU) jayne@msu.edu Module 4.3: Marketing Margins & Marketing Costs

  2. Objectives • Understand relationships between food prices between countries • Examine the relationships between food prices at different marketing levels

  3. Maize price vs. import parity, Lilongwe, Malawi

  4. Maize prices vs. import parity, Blantyre Malawi

  5. Maize prices vs. import parity, Nairobi, Kenya

  6. Wholesale maize grain and maize meal prices, Zambia

  7. Motivation • Why bother studying the relationship between food prices in one market and another? • Why bother studying the relationship between food prices at one level (e.g., farm-gate) and food prices at another level (e.g., retail)?

  8. Definitons • Spatial marketing margins • Spatial marketing costs • Vertical marketing margins • Vertical marketing costs

  9. Luchenza retail price and farmer-reported prices received in remote villages in Mulanje District, 2009/10 marketing year

  10. Wholesale maize grain and breakfast meal prices, Zambia (nominal prices)

  11. Wholesale maize grain and breakfast meal prices, Zambia (real prices)

  12. Determinants of marketing margins • Spatial margins: • 1 • 2 • 3 • Vertical margins • 1 • 2 • 3

  13. Why might margins ≠ costs • Spatial margins: • 1 • 2 • 3 • Vertical margins • 1 • 2 • 3

  14. What does it mean if: • Spatial margins < transfer costs • 1 • 2 • 3 • Spatial margins > transfer costs • 1 • 2 • 3

  15. Maize prices vs. import parity, Nairobi Kenya

  16. December 2008, Kenya

  17. February 2009, Kenya – tariff removed

  18. April 2009, Kenya

  19. August 2009, Kenya

  20. Exercises • Examine maize prices at • SAFEX • Blantyre, Malawi • & Transfer costs between them • Compute the spatial price spread • Compute import parity prices at Blantyre • On the basis of spatial margins vs. transfer costs, predict the months in which you would expect to see imports occurring • Compare this with actual trade flows • Explain the reasons for what you see

More Related